Recurring invoices are bills sent to customers at regular time intervals. Under this method, the supplier has permission to bill the customer regularly for an agreed amount until an agreed date for the services.
When a customer orders the same product regularly, and you send them the same invoice every time, that is a recurring invoice. This invoice method is common with cable companies, gyms, magazine subscriptions, and online software businesses.
Benefits
They make work easy and convenient since the supplier does not have to keep asking for payment, and the customer doesn’t have to make manual payments. Here are some benefits:
Improves cash flow
It assures steady monthly income, which enables a business to achieve its monthly goals and other costs.
Automates the payment system
The business has to create the invoice once and repeatedly send the same every month. It reduces work repetition and eases the flow of work.
Improve customer relations
It helps build recurring relationships, and the customers will see you as a part of their extended team.
Drawbacks
Error detection
Using this invoicing method can make it hard to trace errors as the invoice is already set and sent to the customer regularly.
Under normal invoicing, the customer will send it back for resubmission if there are errors. By doing so, the supplier will correct the error and learn from that.
Xccept offers the best payment solutions that are convenient and affordable. They will make it convenient for you to send recurring invoices to your customer in a convenient way. Reach out to save money on each and every transaction made.
